KUALA LUMPUR: The IJM Corporation Bhd chairman has been detained by graft busters.
His arrest was in connection with investigations into corporate governance issues, procurement processes, financial transactions and the ownership of overseas assets estimated to be worth about RM2.5bil.
The businessman was released within 24 hours due to health reasons.
Sources said the businessman, in his 70s, was detained at about 7pm on Thursday at the Malaysian Anti-Corruption Commission (MACC) headquarters in Putrajaya following searches conducted at his residence.
“The MACC also carried out inspections and searches at three additional locations, namely a fund and investment management institution, an investment bank, and the suspect’s residence.
“Initial investigations found that the investment bank had been appointed to manage a takeover offer process involving the company, including regulatory matters with a self-funded statutory body,” the source said.
On Jan 19, the MACC’s Special Operations division initiated investigations into the suspect over alleged irregularities involving corporate governance, procurement processes, financial transactions and the ownership of overseas assets amounting to RM2.5bil.
Following this, the MACC froze 70 personal and corporate bank accounts linked to the case, involving funds totalling approximately RM30.6mil.
Sources added that investigations are also focused on tracing and seizing other assets suspected to have been acquired through money laundering activities.
To date, 15 individuals, including the suspect’s wife, have been called in to have their statements recorded.
MACC senior director of the Special Operations division, Datuk Mohamad Zamri Zainul Abidin, confirmed the matter when contacted, adding the suspect was released within 24 hours after his statement was recorded due to health concerns.
Previously, IJM Corporation confirmed that MACC officers and those from the Inland Revenue Board were present at the company’s office on Jan 19 to obtain information as part of their process.
“IJM is cooperating fully with the authorities. The company is committed to upholding strong standards of corporate governance, transparency and integrity,” it said in a filing with Bursa Malaysia.
On Jan 21, the company said that a limited number of its bank accounts had been temporarily restricted as part of an ongoing probe by graft busters.
The company said that fewer than 10 IJM bank accounts were affected.
“We wish to clarify that these measures do not affect IJM’s day-to-day business operations.
“We are cooperating fully with the authorities in accordance with applicable laws and procedures,” the company said.
The company had also previously said that its top leadership and other personnel were fully cooperating with the authorities.
It also refuted allegations of money laundering, stressing that since 2012, its United Kingdom investments have been funded primarily through facilities from Malaysian financial institutions and channelled to relevant project special-purpose vehicles in the UK.
